Anatoly Aksakov, Chairman of the Russian State Duma’s Committee on Financial Markets, suggested escalating tensions between India and Pakistan could significantly raise Bitcoin (BTC) prices. In comments made to the Russian Parliamentary Gazette on May 7, Aksakov described BTC as a growing haven amid geopolitical instability.
He noted that rising military friction between the two South Asian nations would likely drive global investors to shift funds into assets like gold, crypto, and other precious metals. As a rule, such tense political situations favor various investment instruments,” he said. These include Bitcoin and gold, especially as Bitcoin is beginning to be used to pay for multiple weapons supply programs.
Aksakov also claimed that some states are already using Bitcoin as a tool for settling cross-border arms deals. While he did not name specific countries, the suggestion points to a broader trend of crypto being used beyond traditional financial systems.
He reiterated that Bitcoin’s appeal rises during times of uncertainty, reinforcing its image as a “safe haven asset.” However, he quickly noted that macroeconomic events in the United States have the largest influence on BTC’s price. This is because the US is home to the world’s largest number of Bitcoin owners, Aksakov added.
Impact on Russia’s ruble and crypto strategy
Despite the potential global effects of an India-Pakistan conflict, Aksakov said such tensions would “not affect the Russian ruble in any way,” noting that Russia’s internal economic conditions primarily drive its value.
Aksakov is widely regarded as the chief architect of Russia’s cryptocurrency legislation. He acknowledged that Russian firms leverage Bitcoin and other digital tokens for cross-border trade.
In September 2024, Russian media reported that Moscow had formed a focus group to explore crypto payments for so-called “dual-use goods”—items with both civilian and military applications.
Stablecoin adoption in Russia picks up
Russia’s state-owned banks are turning to stablecoins for international settlements. Promsvyazbank, a state-run institution, launched the A7 cross-border platform last year. The system is now being used to promote RUB-pegged stablecoins for global trade.
According to Osman Kabaloev, Deputy Director of Financial Policy at the Ministry of Finance, ruble-based blockchain settlement tools are already circulating and being applied in one way or another.
